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Investing in Real Estate Islamabad or Property Islamabad, What things you should take care before investing your hard earned amounts? Either you are looking to Buy a house in islamabad, or sell a house, buying a plot or selling a plot, be careful!
In my 10 years in the real estate business here in Islamabad Pakistan, I bet I have met 5,000 investors at all levels of knowledge and experience. Some have become amazingly successful, while others have lost steam or experienced dramatic failures. In this time, I have noticed that there are certain characteristics that come with real estate investing success. As a matter of fact, that I have come to believe that I can predict with fair accuracy whether a particular investor will be successful.
Before I outline the specific characteristics that I’ve found in successful investors, I’d like to define what I mean by “successful investor”. A successful investor is not the person who owns the most properties or does the most deals, or who has the most zeros in his net worth. A successful investor is simply a person who knows what he wants – financially, personally, and in terms of what he wants to contribute to the world – and uses real estate investing as a way to get those things. For a successful real estate investor, real estate is a means to an end, not an end unto itself. A successful real estate investor works to become as financially secure as is necessary for his peace of mind and who is happy and comfortable with his investment activities.
Successful investors I’ve known include high school dropouts and PhD’s, men and women of all races and backgrounds, people born into poverty and people born with trust funds, guys who started investing at 19 and those who started in their 70’s, part-timers and full timers. There is no single predictor of success, Here are a few.
Successful Investors Have a Plan – and Work It
Real estate investing must be the only profession in the country that has no accepted curriculum of formal training. Since your success as a real estate entrepreneur relies in no small part on your ability to get reliable information and advice when you need it, and since your local community college doesn’t teach courses on important topics like how to evict a non-paying tenant.
Choose a mentor who is knowledgeable, motivating, accessible, and is known for high ethical and business standards. Don’t abuse your mentor by constantly asking for information that you could get from a simple trip to the library. And don’t forget to thank your mentor by taking him to lunch, giving him gift certificates to his favorite restaurant, and, of course, letting him in on good leads when you find them. Where do you find mentors? Try your local non-profit real estate investment or landlording association. It’s full of people who are there to share.
Successful Investors Cull Their Herds
When I was a little kid, I read an article about chicken farmers. This article mentioned that when the new chicks hatched, the farmer killed the weak, undersized, and deformed chicks before they had a chance to grow up. I was, of course, horrified, and immediately began making plans to open an orphanage for runt chickens. Unfortunately, my home in the suburbs and my insensitive parents conspired to keep my project in the planning stages to this day.
Most real estate investors look at selling their “dud” properties with the same horror with which I view the wholesale slaughter of slightly imperfect baby chicks. They will keep a property year after year despite the fact that it loses money, doesn’t fit the owner’s goals, is a huge management hassle or is in a neighborhood that has become a warzone. Successful investors review their portfolios at least once a year, and aggressively get rid of their loser properties before they can damage the profits from their winners.
Successful Investors Protect Their Assets
We tend to think of our investment activities in terms of bricks and cash. In fact, the real estate business is about people. Without sellers, renters, contractors, agents, and so on, you would have no real estate business. And since your business activites affect so many other people, I think it’s important to decide how you are going to treat the people you come into contact with each day.
Since there is no formal code of ethics for real estate investors, it’s up to each of us to decide how we’ll behave toward customers, tenants, sellers, workers etc. Instead of using as a measure, “what can I get away with?”, or “what allows me to sleep at night?”, perhaps the proper question is, “what’s fair?”. Take the time to think about your activities and how they affect people that you come into contact with.
Successful Investors Involve Their Families
In ten years, I have yet to meet a truly successful investor who did not have the support of his (or her) significant other. Because your real estate activities generally involve spending (or promising to pay back) tens of thousands of dollars at a time, and since your business will take time away from your family, I think it’s very important to sit down with everyone who’s old enough to feed themselves and explain what you’re doing, and why, and that you’d really like to have their help or at least their understanding. If you have a spouse who’s reluctant to allow you to take out a second mortgage on your home in order to invest in the deal of a lifetime, try sending him or her to a beginner’s seminar on investment. Some of your significant other’s very natural fears may be overcome by an understanding of what you’re doing.
Successful Investors Treat Everyone Better Than They Expect to Be Treated
What goes around comes around. If you think that your reputation as a buyer or landlord doesn’t precede you, think again. When you go the extra mile to solve people’s problems, both profit and success will follow.
Successful Investors Stay Educated
Since I began investing in real estate full time in 1989, my state has passed a mandatory seller disclosure law. The federal government has made lead-based paint disclosures mandatory and expensive to ignore. Congress has changed the rules for capital gains taxes twice. HIV-positive people have become a “protected class” in terms of fair housing. My city has passed ordinances that say that I can be fined or jailed for renting to drug dealers. Mortgage money for high-risk borrowers has become cheap and easy to get. The Fair Credit Reporting Act has been revised to include landlords. Things change. Your business is affected. Stay on top of it.
Successful Investors Pass On What They’ve Learned
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